Canadian auto sales hit an annualized 1.65 million units last month

Recent improved activity in the auto sales sector has led Scotia Economics to increase its full-year 2010 Canadian sales forecast.

The new projections come after strong July figures in the latest Global Auto Report from Scotia Economics. The recently released report showed Canadian sales advanced to an annualized 1.65 million units last month.

Those strong figures helped lift volumes at several automakers to the highest July on record and counted as the second monthly rebound in a row after a weak performance in May.

Full-year 2010 Canadian sales forecast have now been bumped from 1.565 million units from 1.525 million, Scotia Economics says.

Another noteworthy change came in segment volumes, as the traditional powerhouse small car segment declined two per cent year-over-year through July.

Small cars are traditionally the strongest point in Canada but now sit at its lowest point in ten years with just 29 per cent market share - down from a 2008 high of 35 per cent.